Well if you travel a lot, this story will should give you pause. Although it might be a sarcastic perspective about the bankrupt eating the bankrupt, it is not all that far from the truth. If you fly often on business like I do, you will understand Scott’s point of view here !!
(2006-11-16) — If the U.S. Airways buyout of Delta receives regulatory approval, industry experts said it would make the resulting company the largest of the world’s bankrupt airlines and a strong candidate for a future government bailout.
U.S. Airways yesterday announced it would offer Delta’s creditors $8 billion in stock, cereal boxtops and S&H Green Stamps and would name the merged firm Delta Airlines, which the source called, “one of the most recognizable brand names in the non-profit airline industry.”
“The synergies are incredible,” said an unnamed spokesman for U.S. Airways, “There’s a lot of overlap in areas of incompetence, customer dissatisfaction, mismanagement and hubris. Thanks to economies of scale, together we can achieve new levels of mediocrity.”
The source assured investors that the new Delta Airlines stock would make “an excellent tax write off, and a great way to add balance to your portfolio of growth stocks.”” — Scott Ott / ScrappleFace
The reality is that there are virtually no synergies at all. US Airways flys a fleet primarily of Airbus A-series aircraft while Delta is mostly a Boeing fleet!! Go figure! The recent announcement of a U.S. Airways – Delta buyout is just one more blatent example that leads us to believe that airline executives are all smoking dope these days, climbing in bed with each other to protect their golden parachutes. Hey guys! What happened to the U.S. Airways – United merger?